Qualcomm ‘Planning Major Job Cuts’

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

US chipmaker could also spin off some parts of business under corporate shake-up, reports claim

Qualcomm is reportedly planning a number of significant changes as the company prepares for its toughest financial results to date.

The San Diego-based chipmaker is apparently set to announce huge lay-offs that could affect as much as ten percent of its total workforce, leaving thousands of employees out of work, according to The Information.

However other reports have claimed that the company could undergo a break-up as the result of shareholder pressure to spin off its more lucrative business arms.

Precarious

The Wall Street Journal claims ongoing pressure from hedge fund Jana Partners, a major shareholder in Qualcomm, will finally get its way and see the company’s chipmaking business split away from its patent-licensing business.

Qualcomm is yet to respond to either set of reports, but the company is due to release its quarterly earnings report on Wednesday, when more details should become clear.

Its last set of results back in April revealed a 46 percent drop in revenues as rivals such as Nvidia and MediaTek increasingly stole market share away, and Samsung chose to use an internally-developed processor for its latest flagship devices.

The firm, which produces the chipsets for many of the world’s leading Android smartphones and tablets, as well as some key components for Apple’s device, has been hit with several major setbacks recently as it look to maintain its dominant market position.

Last week, it was revealed that Qualcomm is to face two separate EU antitrust investigations be investigated following claims that it abused its position as a leader in the production of semiconductors for the lucrative consumer market.

The company was engaged in a similar investigation by Chinese authorities for well over a year following claims that the company reportedly charged higher prices to Chinese companies than in other countries, claims which could land Qualcomm with a $1bn fine.